If a firm can sell3,000 units of product A at $10 per unit and5,000 at $8, then

A) the price elasticity of demand is approximately 0.44.
B) A is a complementary good.
C) the price elasticity of demand is approximately 2.25.
D) A is an inferior good.

Complementary Good

A complementary good is a product or service that adds value to another product or service when both are used together, leading to an increase in demand for one when the price of the other decreases.

Inferior Good

An inferior good is one where demand decreases as the income of the consumer increases, opposed to a normal good where demand increases with an increase in income.

Price Elasticity

A determination of how price fluctuations affect the demand level for a good.